Cisco Systems Buying BroadSoft for $1.9 Billion Cash

Cisco Systems Inc. will buy U.S. telecommunications software company BroadSoft Inc in a deal valued at $1.9 billion, as the world's largest networking gear producer shifts from its stagnating legacy business of switches and routers.

Cisco said on Monday it offered $55 per share, which represents a premium of 2 percent to BroadSoft's last close.

BroadSoft shares were up 1.5 percent before the bell, while Cisco shares were up marginally.

The deal, which comes after Reuters reported on Sunday that the companies were in talks, will give Cisco a stronger foothold in selling unified communications software to big telecommunications firms.

The equity value of the deal is $1.71 billion, based on 31 million shares outstanding, according to Thomson Reuters data.

The deal is expected to close during the first quarter of 2018, the companies said in a statement.

Cisco Systems Inc. will buy U.S. telecommunications software company BroadSoft Inc in a deal valued at $1.9 billion, as the world's largest networking gear producer shifts from its stagnating legacy business of switches and routers.